Graphic Design Market Overcrowded?

Make a free logo for a local business that may need. Make a better design then what they currently have. Get the word out that you design. Do this a couple times and pay attention to the responses from the owner. If a company uses your logo then that's free advertisement. Work your way from there.

JACKHARROW is correct as well.

When I used to design on forums, especially here, my uniqueness came from my userbars. I designed logos and banners on the side for people but userbars was the main money maker. Paired with free graphics for randoms and prospects I deemed worthy of receiving free services if I'm treated well.